Income statement (profit and costs) 2.3.1 Flashcards
Amortisation
The writing off of an intangible asset.
Cost of sales
The direct costs of a business.
Exceptional costs
A one-off cost, such as a large bad debt.
Gross profit
The difference between revenue and cost of sales.
Gross profit margin
Gross profit expressed as a percentage of revenue.
Operating profit
The difference between gross profit and business overheads, such as selling and administrative expenses.
Operating profit margin
Operating profit expressed as a percentage of revenue.
Net profit or profit for the year
The difference between operating profit and interest and exceptional items.
Net profit margin or profit for the year margin
Net profit after tax, expressed as a percentage of revenue.
Statement of comprehensive income
A financial document showing a company’s income and expenditure
Revenue or turnover
The total income of a business resulting from sales of goods or services.
